Institute of Certified Bookkeepers
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June 2015 Question of the Month - Staff Bonus

  • 123 posts
  • # 109201

My client has awarded an employee a bonus for staff member of the year, in the form of a voucher for $2,000 to a travel agent. How should I enter this in payroll and is FBT a factor?

  • 123 posts
  • # 109648

This voucher is definitely considered to be a fringe benefit. It would probably be classified as a “residual fringe benefit” as it does not fit into the other categories. It would be called a travel benefit.

Because this is not considered entertainment, the business can most likely claim this as a deduction - but you will need to check this with the tax agent.  It is not wages and salary so does not get entered in payroll, but simply as an expense paid to the supplier. 

If it is claimable, enter with relevant tax code as per invoice from supplier and/or tax agent's advice. If it is not claimable, enter as an "other expense" so it sits outside the usual financial accounts, and use N-T code.

If the employee has received other benefits throughout the FBT year, you will also need to contact the tax agent about grossed-up amounts to report on the payment summary.

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